The delivery trucks of Italiana's Pizzeria incurred maintenance costs of $2,400 during its busiest month of 20xx,in which 8,000 miles were driven collectively.During its slowest month,$1,800 in maintenance costs were incurred,resulting from 5,000 miles being driven.Using the high-low method,what maintenance cost would the company expect to incur at 6,800 miles of driving?

Question

Quizplus · Accepted Answer

The variable cost per mile is ($2,400 - $1,800) / (8,000 - 5,000) = $0.12 per mile. The fixed cost is $1,800 - (0.12 * 5,000) = $600. Therefore, the total maintenance cost at 6,800 miles of driving is $600 + (0.12 * 6,800) = $2,160.

The Delivery Trucks of Italiana's Pizzeria Incurred Maintenance Costs of $2,400